HomeMy WebLinkAboutUpdate to the 2007 Affordable Housing Market Analysis for the Iowa City Urbanized Area
Update to the 2007 Affordable
Housing Market Analysis for
the Iowa City Urbanized Area
January 2015
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
ii
Prepared by the Metropolitan Planning Organization of Johnson County (MPOJC) and the
Housing Trust Fund of Johnson County (HTFJC)
Kent Ralston, Director, MPOJC
Brad Neumann, Asst. Transportation Planner
Darian Nagle-Gamm, Traffic Engineering Planner
Kelly Davila, Transportation Planning Intern
David Sweeney, Transportation Planning Intern
Tracey Achenbach, Executive Director, HTFJC
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
iii
Table of Contents
List of Tables and Figures iv
Introduction 1
Existing Conditions 2
Population and Demographic Data 2
Economic and Employment Data 6
Poverty 6
Free and reduced lunch program 7
Employment 9
Distribution of income 11
Median household income 12
Income by age of householder 13
Basic Housing Trends 17
Household composition 18
Owner-occupied versus rental 18
Housing stock 19
Building permits 20
Housing vacancy 21
Housing Costs and Cost Burden 22
Renter 22
Homeowner 24
Income versus housing cost 26
Cost burden illustrated 28
Conclusion 30
Strategies to Increase Affordable Housing Opportunities 30
Appendix A (Updated January, 2015) 33
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
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Figures
Figure 1 Population trends, 2000-2012 2
Figure 2 Projected population growth 3
Figure 3 Population distribution by age group, 2012 4
Figure 4 Families in poverty – number and percentage 6
Figure 5 ICCSD and CCASD FRL program – proportion and total participants 7
Figure 6 Employment and mean salary by sector 10
Figure 7 Income distribution by jurisdiction, 2012 11
Figure 8 Median household income, 2000-2012 12
Figure 9 County income distribution by age group, 2007 13
Figure 10 County income distribution by age group, 2012 14
Figure 11 Owner-occupied and rented units 18
Figure 12 Growth in single and multifamily housing units, 2000-2012 19
Figure 13 Total building permits issued, 2007-2013 20
Figure 14 Vacancy rates by jurisdiction 21
Figure 15 Proportion of cost-burdened renters by jurisdiction 22
Figure 16 Median housing value for owner-occupied units 24
Figure 17 Proportion of cost-burdened owners by jurisdiction 25
Figure 18 Percent change in median housing value and median household income by
jurisdiction, 2000-2012
26
Figure 19 Median gross housing costs as a percentage of household income 26
Figure 20
Figure 21
Median gross rent versus 30 percent monthly wages by selected industries
Percent monthly wage needed to pay median rent for selected industries
28
29
Tables
Table 1 Historical population trends 2
Table 2 Population distribution by age group, 2012 4
Table 3 Population distribution by race and ethnicity for the urbanized area 5
Table 4 FRL data by school year, ICCSD and CCASD 8
Table 5 Unemployment in civilian labor force, by region, state, and nation 9
Table 6 Median household incomes by jurisdiction 12
Table 7 Income distribution by age of householder by jurisdiction, 2012 15
Table 8 Non-family households 17
Table 9 Households with children 17
Table 10 Regional growth in housing stock, 2000-2012 19
Table 11 Annual breakdown of building permits issued, 2007-2013 20
Table 12 Cost-burdened renters by region, county, and state 23
Table 13 Severely cost-burdened renters by region, county, and state 23
Table 14
Table 15
Table 16
Cost-burdened homeowners by region, county, and state
Severely cost-burdened homeowners by region, county, and state
Change in median gross rental costs by jurisdiction, county, and state
25
25
28
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
1
Introduction
This document provides an update to the Affordable Housing Market Analysis completed by Mullin &
Lonergan Associates in 2007. This document is not intended to be a replication of that analysis, but
rather to compare socio-economic conditions and housing needs of 2007 to today, and to discuss
strategies to help meet identified needs. This update to the 2007 analysis was requested by the
Metropolitan Planning Organization of Johnson County’s (MPOJC) Urbanized Area Policy Board, which
ultimately led MPOJC staff to work with the Housing Trust fund of Johnson County to develop this
report.
The 2007 document is intended as a point of departure. However, data for the year 2007 is largely
unavailable for our community since the American Community Survey (ACS) had only begun to
standardize their data collection in 2005. Therefore, data used in the generation of the this document
is largely derived from Census estimates, primarily Census 2000 and ACS 2008-2012 3-Year and 5-Year
estimates. Additionally, county, state, and national data are used to provide broader context as
appropriate. Census data was preferred to local data sources because it maintains consistent
methodology and statistical rigor.
Appendix A was added to this document in January, 2015 to include information requested by the
Urbanized Area Policy Board. Figure 5 and Table 4 were also modified for this update.
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
2
Existing Conditions
Population and Demographics
From 2000 to 2007, the population of the urbanized area grew from 84,672 to an estimated 91,339, a
7.9 percent increase. The population has grown more rapidly since the 2007 study was released,
increasing to an estimated 103,800 by 2012, a 13.6 percent change. Suburban communities continue to
grow the fastest, with the population of Tiffin growing by 90 percent and the population of North Liberty
growing by 148 percent since 2000.
Figure 1
Historical trends reflect the trajectory of suburban population growth. Across Iowa, populations in rural
counties generally decline, while metropolitan areas gain in population. The population of Johnson
County increased 18 percent between 2000 and 2010, compared to the state’s 4 percent increase in
population during the same period.
Table 1. Historical population trends
YEAR CORAL-
VILLE
IOWA
CITY
NORTH
LIBERTY TIFFIN UNIVERSITY
HEIGHTS
URBANIZED
AREA
JOHNSON
COUNTY IOWA
1960 2,357 33,443 334 311 841 37,952 53,663 2,757,537
1970 6,130 46,850 1,055 299 1,265 55,599 72,127 2,824,376
1980 7,687 50,508 2,046 413 1,069 61,723 81,717 2,913,808
1990 10,347 59,738 2,926 460 1,042 74,513 96,119 2,776,755
2000 15,123 62,220 5,367 975 987 84,672 111,006 2,926,324
2010 18,907 67,862 13,374 1,947 1,051 103,141 130,882 3,047,646
15,123
62,220
5,367
975
987 84,672 111,006
3,808 6,144
7,963
882
331 19,128 20,621
0%
20%
40%
60%
80%
100%
CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY
HEIGHTS
URBANIZED AREA JOHNSON
COUNTY
POPULATION TRENDS, 2000 -2012
Population in 2000 Population growth, 2000-2012
Source: U.S. Census Bureau (2000 Census and ACS 2008-2012 5-Year Estimates)
Source: U.S. Census Bureau (1960-2010 Decennial Censuses)
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
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Over the next 25 years, MPOJC projects that population will continue to grow in every jurisdiction
except University Heights. By 2040, the population of the urbanized area is estimated to grow by 39
percent to 144,600, up from 103,800 in 2012. The majority of this growth will be concentrated in the
suburban municipalities.
Figure 2
18,931
68,364
13,330
1,857 1,318
103,800
131,627
31,900
79,500
28,100
4,100 1,000
144,600
182,200
-
25,000
50,000
75,000
100,000
125,000
150,000
175,000
200,000
CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY
HEIGHTS
URBANIZED
AREA
JOHNSON
COUNTY
PROJECTED POPULATION GROWTH
2012 2020 2030 2040
Source: MPOJC Long Range Transportation Plan, 2012
Source: ACS 2012 Population Estimates; MPOJC Long-Range Transportation Plan, Population Projections (based on decennial Census data)
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
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Due to the large student population at the University of Iowa, the urbanized area has proportionally
more residents between ages 18 and 24 than other urbanized areas in the state. However, each
jurisdiction has a slightly different age composition. Nearly half of the population of Iowa City and more
than 44 percent of the urbanized area population are under age 25. Coralville’s population reflects its
large number of family households, with proportionally more children than the urbanized area average.
The age distributions of North Liberty and Tiffin are similar, as Figure 3 illustrates.
Table 2. Population distribution by age group, 2012
Figure 3
15%
8%
18%
17%
15%
11%
12%
8%
7%
8%
11%
3%
7%
8%
13%
34%
9%
6%
30%
26%
22%
19%
17%
29%
23%
23%
19%
17%
15%
9%
18%
15%
5%
11%
12%
11%
10%
9%
11%
8%
10%
11%
11%
8%
7%
10%
8%
9%
10%
8%
8%
9%
7%
9%
7%
9%
0%10%20%30%40%50%60%70%80%90%100%
CORALVILLE
IOWA CITY
NORTH LIBERTY
TIFFIN
UNIVERSITY HEIGHTS
URBANIZED AREA
JOHNSON COUNTY
POPULATION DISTRIBUTION BY AGE GROUP, 2012
Less than 10 10 to 17 18-24 25-34 35-44 45-54 55-64 65 and over
AGE CORALVILLE IOWA CITY NORTH
LIBERTY TIFFIN UNIVERSITY
HEIGHTS
URBAN
AREA
JOHNSON
COUNTY
< 10 2,825 5,658 2,413 311 192 11,399 15,058
10 to 17 1,591 4,427 1,067 213 42 7,340 10,909
18 to 24 2,466 23,134 1,155 115 391 27,261 28,862
25 to 34 3,613 11,252 3,836 419 296 19,416 22,169
35 to 44 2,861 6,025 2,379 276 68 11,609 15,115
45 to 54 2,083 6,734 1,167 198 104 10,286 15,037
55 to 64 2,032 5,581 884 191 108 8,796 13,132
≥ 65 1,460 5,553 429 134 117 7,693 11,345
TOTAL 18,931 68,364 13,330 1,857 1,318 103,800 131,627
Source: U.S. Census Bureau, (ACS 2008-2012 5-Year Estimates)
Source: U.S. Census Bureau, (ACS 2008-2012 5-Year Estimates)
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
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Overall, the population of the urbanized area has become more racially diverse since the 2000 Census.
Since 2007, however, growth has slowed among Black and Asian populations. Meanwhile, the Hispanic
population is growing more quickly.
Table 3. Population distribution by race and ethnicity for the urbanized area
YEAR WHITE BLACK
AMER.
IND./
AK NATIVE
ASIAN
NATIVE
HAWAIIAN/
PAC. ISL.
OTHER TWO OR
MORE HISPANIC
2000 92.1% 2.5% 0.2% 2.8% < 0.1% 0.8% 1.5% 2.5%
2007 85.6% 4.9% 0.3% 6.1% < 0.1% 1.8% 1.4% 3.6%
2012 87.5% 4.7% 0.1% 4.5% < 0.1% 0.8% 2.4% 4.8%
Source: U.S. Census Bureau (2000 Census, ACS 2005-2007 3-Year, and ACS 2008-2012 5-Year Estimates)
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
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Economic and Employment Data
Poverty
The U.S. Census Bureau collects data on individuals in poverty by comparing family incomes to
thresholds established by the federal government, which are adjusted annually for inflation. The 2012
poverty thresholds are defined as $11,720 for a single person and $23,492 for a family of four.
The number of families in poverty increased in all of the communities in the urbanized area, with the
exception of Coralville. The poverty rate in Iowa City is high compared to the rest of the urbanized area.
This is not surprising given the large number of students who typically have low incomes but may be
partially or fully supported by their families.
Figure 4
0%
2%
4%
6%
8%
10%
12%
CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY
HEIGHTS
URBANIZED
AREA
JOHNSON
COUNTY
FAMILIES IN POVERTY - NUMBER AND PERCENTAGE
2000 2012
Source: U.S. Census Bureau, (2000 Census and ACS 2008-2012 5-Year Estimates)
205
202
763
1,275
48
168
10
26
12 13
1,038
1,684
1,247
1,918
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
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Free and Reduced Lunch Program
Schoolchildren whose families’ incomes fall below the poverty line are eligible to participate in a free
and reduced lunch (FRL) program. The total number of students in the Iowa City Community School
District (ICCSD) and Clear Creek Amana School District (CCASD) enrolled in the free and reduced lunch
program has more than doubled since 2003. While school district boundaries do not align with the
jurisdictional boundaries used for the purposes of this report, free and reduced lunch data gives a
general sense of the magnitude and spatial distribution of poverty. Between 2000 and 2012, the
number of households with children in Johnson County increased 14 percent (See Table 9), but the
number of FRL participants increased 69 percent.
Figure 5
0%
5%
10%
15%
20%
25%
30%
35%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
ICCSD AND CCASD FRL PROGRAM -
PROPORTION AND TOTAL PARTICIPANTS
2,692
4,602
2,914
3,429 3,450
3,728 3,853 3,979
2,257
2,506 2,628
Source: Iowa City Community School District, Clear Creek Amana School District
Note: This figure was updated January, 2015
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
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Table 4. Free and reduced lunch program data by school and year, ICCSD and CCASD
2000 2007 2013
SCHOOL
TOTAL
ENROLLED
TOTAL
FRL
FRL
RATE
TOTAL
ENROLLED
TOTAL
FRL
FRL
RATE
TOTAL
ENROLLED
TOTAL
FRL
FRL
RATE
ELEMENTARY SCHOOLS
AMANA ELEM 177 23 13% 144 22 15.3% 149 27 18.1%
BORLAUG N/A N/A N/A N/A N/A N/A 323 85 26.3%
CC ELEM 427 211 49.4% 473 93 19.7% 437 99 22.7%
CVL CENTRAL 458 129 28.2% 448 123 27.5% 421 141 33.5%
GARNER
N/A N/A N/A N/A N/A N/A 491 103 21.0%
HILLS 164 84 51.2% 152 82 54.0% 108 69 63.9%
HOOVER 275 29 10.6% 306 36 11.8% 354 91 25.7%
HORN 303 24 7.9% 294 39 13.3% 454 130 28.6%
KIRKWOOD 366 132 36.1% 441 211 47.9% 328 236 72.0%
LEMME 273 58 21.3% 283 49 17.3% 364 93 25.6%
LINCOLN 256 3 1.2% 256 4 1.6% 238 14 5.9%
LONGFELLOW 276 42 15.2% 284 31 10.9% 330 65 19.7%
LUCAS 420 134 31.9% 426 153 35.9% 433 234 54.0%
MANN 261 131 50.2% 249 116 46.6% 245 136 55.5%
NORTH BEND N/A N/A N/A N/A N/A N/A 401 95 23.7%
PENN 331 71 21.5% 391 97 24.8% 504 122 24.2%
ROOSEVELT 248 107 43.2% 298 139 46.6% N/A N/A N/A
SHIMEK 224 13 5.8% 220 15 6.8% 199 26 13.1%
TWAIN 295 192 65.1% 220 147 66.8% 266 209 78.6%
VAN ALLEN 284 72 25.4% 487 100 20.5% 467 93 19.9%
WEBER 493 73 14.8% 494 50 10.1% 476 167 35.1%
WICKHAM 435 22 5.1% 452 24 5.3% 479 34 7.1%
WOOD 432 198 45.8% 486 239 49.2% 529 408 77.1%
MIDDLE AND JUNIOR HIGH SCHOOLS
CCA MIDDLE 286 48 16.8% 347 64 18.4% 388 91 23.5%
NORTH CENTRAL N/A N/A N/A 308 44 14.3% 461 92 20.0%
NORTHWEST 907 173 19.1% 620 154 24.8% 643 205 31.9%
SOUTHEAST 677 179 26.4% 660 189 28.6% 749 328 43.8%
HIGH SCHOOLS
CITY HIGH 1,542 234 15.2% 1,359 242 17.8% 1,413 503 35.6%
CCA HIGH 331 45 13.6% 452 72 15.9% 401 117 21.5%
WEST HIGH 1,754 268 15.3% 1,838 316 17.2% 1,939 478 24.7%
TATE HIGH 69 26 37.7% 119 63 52.9% 146 111 76.0%
TOTAL – BOTH DISTRICTS
11,964 2,721 22.7% 12,507 2,914 23.3% 14,136 4,602 32.6%
Source: Iowa City Community School District and Clear Creek Amana School District
Note: This table was updated January, 2015
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
9
Employment
The urbanized area has a slightly higher unemployment rate than the state, in part because of the large
student population. The unemployment rate in Johnson County has not changed dramatically since
2000, but remains below the national average, which was 6 percent in 2012.
Table 5. Unemployment in civilian labor force, by region, state, and nation
YEAR
URBANIZED AREA JOHNSON COUNTY IOWA UNITED STATES
Total % Total % Total % Total %
2000 1,869 4.7 2,625 2.9 64,906 4.2 7.9 million 3.7
2007 2,259 2.9 2,586 2.6 79,716 3.4 9.9 million 4.2
2012 2,938 4.7 3,372 3.1 91,676 3.8 14.5 million 6.0
Figure 6 on the following page illustrates the percentage of workers by industry in relation to the mean
income for that industry in the urbanized area. From left to right, the graph shows industries with the
greatest to least percentage of employed persons. This information is useful to determine how workers
in different sectors of employment are affected by the housing market in our community.
Source: U.S. Census Bureau (2000 Census, ACS 2005-2007 3-Year, and ACS 2008-2012 5-Year Estimates)
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Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
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Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
11
Distribution of Income
Distribution of household income is a good indicator of how income varies with respect to location and
may help jurisdictions better understand their affordable housing needs. Figure 7 illustrates income
distribution by jurisdiction. The proportion of households with income between $75,000 and $150,000
in each jurisdiction was very similar in 2012, although University Heights had a much higher percentage
of households earning $150,000 or more. Compared to the other communities in the area, Iowa City
had a much higher percentage of households earning less than $20,000, likely due to the large student
population.
Figure 7
15.3%
9.8%
8.2%
9.2%
19.7%
14.6%
12.2%
11.2%
29.3%
11.3%
6.8%
9.0%
15.6%
10.2%
10.3%
7.7%
10.9%
9.5%
10.1%
10.8%
18.6%
19.4%
16.1%
4.5%
7.8%
8.4%
20.4%
15.9%
18.2%
14.2%
11.2%
3.8%
21.9%
11.0%
7.0%
4.5%
16.5%
11.8%
11.6%
15.9%
20.0%
10.1%
7.9%
8.5%
17.3%
14.0%
12.9%
9.2%
17.1%
11.3%
10.6%
9.9%
19.4%
14.3%
11.6%
5.8%
< $20,000
< $30,000
< $40,000
< $50,000
< $75,000
< $100,000
< $150,000
≥ $150,000
INCOME DISTRIBUTION BY JURISDICTION, 2012
CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS JOHNSON COUNTY IOWA
Source: U.S. Census Bureau (ACS 2008-2012 5-Year Estimates)
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
12
Median Household Income
The 2007 market study reported a slight increase in real median household income throughout the
urbanized area between 2000 and 2007. When adjusted for inflation, median household incomes
dropped by nearly 7 percent between 2000 and 2012. By jurisdiction, median household incomes
dropped 12.4 percent in Iowa City, 16.2 percent in Tiffin, and 12.5 percent in University Heights from
2000 to 2012. During the same period, median household incomes increased by 7.9 percent in Coralville
and 0.6 percent in North Liberty.
Table 6. Median household incomes by jurisdiction
YEAR CORALVILLE IOWA CITY NORTH
LIBERTY TIFFIN UNIVERSITY
HEIGHTS
URBAN
AREA
JOHNSON
COUNTY
2000 $52,479 $48,202 $58,570 $58,406 $67,430 $57,017 $55,207
2012 $56,635 $42,220 $58,904 $48,929 $59,018 $53,141 $53,993
Figure 8
$57,017
$55,207 $54,392
$50,347
$54,585
$51,379
$53,141
$53,993
$51,129
$38,000
$43,000
$48,000
$53,000
$58,000
URBANIZED AREA JOHNSON COUNTY IOWA
MEDIAN HOUSEHOLD INCOME, 2007-2012
2000 2007 2012
Source: U.S. Census Bureau (2000 Census, ACS 2005-2007 3-Year, and ACS 2008-012 5-Year Estimates)
Source: U.S. Census Bureau (2000 Census and ACS 2008-012 5-Year Estimates)
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
13
4,693
1,161
702
384
678
121
3,175
1,893
2,053
2,273
4,833
3,026
2,289
1,199
1,341
1,108
1,042
1,702
2,977
2,190
2,949
2,135
1,459
931
759
747
980
481
411
333
0%10%20%30%40%50%60%70%80%90%100%
< $20,000
< $30,000
< $40,000
< $50,000
< $75,000
< $100,000
< $150,000
≥ $150,000
COUNTY INCOME DISTRIBUTION BY AGE GROUP, 2007
Under 25 25-44 45-64 65+
Income by Age of Householder
Showing income distribution by age of householder can help identify which segments of the population
may be most impacted by housing costs. Figures 9 and 10 show income distribution by age for 2007 and
2012. A common misconception in Johnson County is that the majority of the lowest income
households are comprised of students. However, in 2007, the majority of households in the county
earning less than $20,000 (approximately 6,000 out of 10,938) had a householder over the age of 25.
This proportion increased in 2012.
Figure 9
Source: U.S. Census Bureau (ACS 2005-2007 3-Year Estimates)
57
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
14
Figure 10
4,388
1,341
767
611
697
312
81
23
3,187
1,866
1,715
1,976
4,065
3,504
2,679
1,396
1,570
850
1,045
1,305
2,922
2,667
3,409
2,925
1,445
1,255
632
619
1,473
936
659
506
0%10%20%30%40%50%60%70%80%90%100%
< $20,000
< $30,000
< $40,000
< $50,000
< $75,000
< $100,000
< $150,000
≥ $150,000
COUNTY INCOME DISTRIBUTION BY AGE GROUP, 2012
Under 25 25-44 45-64 65+
Source: U.S. Census Bureau (ACS 2008-2012 5-Year Estimates)
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
15
When income distribution by age is examined for each community, Iowa City has the highest proportion
of households with income below $20,000. This is true even when the households with a householder
under age 25 are discounted. In Iowa City, 4,289 of 20,985 households (20.5 percent) with a
householder age 25 or older have a household income less than $20,000. For the remaining
municipalities, that proportion is under 10 percent. In total, there are 5,618 urbanized area households
with a householder over the age of 25 and income less than $20,000.
Table 7. Household income distribution by age of householder by jurisdiction, 2012
CORALVILLE
Income Under 25 25-44 45-64 65+
Total % Total % Total % Total %
< $20,000 463 49.7 350 10.0 247 10.0 123 14.7
< $30,000 87 9.3 461 13.2 78 3.2 133 15.9
< $40,000 120 12.9 229 6.5 190 7.7 91 10.9
< $50,000 99 10.6 398 11.4 148 6.0 61 7.3
< $75,000 110 11.8 692 19.8 598 24.2 118 14.1
< $100,000 21 2.3 580 16.6 376 15.2 155 18.5
< $150,000 31 3.3 446 12.7 380 15.4 89 10.6
≥ $150,000 0 0.0 343 9.8 455 18.4 68 8.1
Total 931 100 3499 100 2472 100 838 100
IOWA CITY
Income Under 25 25-44 45-64 65+
Total % Total % Total % Total %
< $20,000 3692 58.6 2436 25.3 1003 13.3 850 22.1
< $30,000 1117 17.7 952 9.9 411 5.5 608 15.8
< $40,000 387 6.1 775 8.1 438 5.8 241 6.3
< $50,000 405 6.4 944 9.8 718 9.5 386 10.0
< $75,000 485 7.7 1850 19.2 1150 15.3 759 19.7
< $100,000 161 2.6 1124 11.7 1132 15.0 365 9.5
< $150,000 34 0.5 1011 10.5 1440 19.1 334 8.7
≥ $150,000 23 0.4 520 5.4 1235 16.4 303 7.9
Total 6304 100 9612 100 7527 100 3846 100
NORTH LIBERTY
Income Under 25 25-44 45-64 65+
Total % Total % Total % Total %
< $20,000 125 25.7 212 5.8 146 11.3 152 39.6
< $30,000 33 6.8 319 8.7 90 7.0 112 29.2
< $40,000 141 29.0 284 7.7 149 11.5 17 4.4
< $50,000 68 14.0 390 10.6 142 11.0 32 8.3
< $75,000 42 8.6 685 18.6 306 23.7 57 14.8
< $100,000 77 15.8 898 24.4 146 11.3 14 3.6
< $150,000 0 0.0 709 19.3 234 18.1 0 0.0
≥ $150,000 0 0.0 181 4.9 78 6.0 0 0.0
Total 486 100 3678 100 1291 100 384 100
Source: U.S. Census Bureau (ACS 2008-2012 5-Year Estimates)
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
16
Table 7. (Continued) Income distribution by age group by jurisdiction
TIFFIN
Income Under 25 25-44 45-64 65+
Total % Total % Total % Total %
< $20,000 14 25.0 31 7.6 9 3.4 10 11.0
< $30,000 0 0.0 21 5.1 23 8.7 25 27.5
< $40,000 12 21.4 72 17.6 55 20.9 28 30.8
< $50,000 0 0.0 88 21.6 31 11.8 11 12.1
< $75,000 12 21.4 70 17.2 57 21.7 10 11.0
< $100,000 18 32.1 84 20.6 11 4.2 3 3.3
< $150,000 0 0.0 30 7.4 58 22.1 4 4.4
≥ $150,000 0 0.0 12 2.9 19 7.2 0 0.0
Total 56 100 408 100 263 100 91 100
UNIVERSITY HEIGHTS
Income Under 25 25-44 45-64 65+
Total % Total % Total % Total %
< $20,000 64 47.4 41 20.9 2 1.8 6 8.2
< $30,000 31 23.0 8 4.1 2 1.8 16 21.9
< $40,000 22 16.3 2 1.0 0 0.0 12 16.4
< $50,000 4 3.0 13 6.6 3 2.7 3 4.1
< $75,000 10 7.4 41 20.9 25 22.1 9 12.3
< $100,000 0 0.0 47 24.0 10 8.8 4 5.5
< $150,000 4 3.0 26 13.3 18 15.9 12 16.4
≥ $150,000 0 0.0 18 9.2 53 46.9 11 15.1
Total 135 100 196 100 113 100 73 100
Source: U.S. Census Bureau (ACS 2008-2012 5-Year Estimates)
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
17
Basic Housing Trends
Household Composition
Non-family households are very common in the urbanized area, as many students share housing to
reduce costs. In Coralville, Iowa City, and University Heights, there were proportionally fewer non-
family households in 2012 than in 2000, while in North Liberty and Tiffin there were proportionally
more. There was little measurable change in the overall proportion of non-family households in
Johnson County as a whole. Between 2000 and 2012, the proportion of households with children
decreased in all communities within the metro area with the exception of Tiffin.
Table 8. Non-family households
YEAR CORALVILLE IOWA CITY NORTH
LIBERTY TIFFIN UNIVERSITY
HEIGHTS
URBANIZED
AREA
JOHNSON
COUNTY
Total % Total % Total % Total % Total % Total % Total %
2000 3,148 48.7 14,002 55.6 858 38.0 171 38.9 213 45.6 18,392 52.8 20,502 46.5
2012 3,345 39.9 15,156 52.5 2,631 44.0 347 39.8 245 45.0 21,724 48.6 24,415 46.2
Households with children have different social and economic characteristics and housing needs. Factors
such as location, size of housing unit, and proximity of other households with children may influence a
family’s decision to purchase or rent one home over another. The proportion of housing suitable for
family occupancy should correspond to the proportion of families with children. Furthermore, a variety
of single and multifamily units provides families with more options to make housing choices based on
location.
Table 9. Households with children
YEAR
CORALVILLE IOWA CITY NORTH
LIBERTY TIFFIN UNIVERSITY
HEIGHTS
URBANIZED
AREA
JOHNSON
COUNTY
Total % Total % Total % Total % Total % Total % Total %
2000 1,882 29.1 5,600 22.2 829 36.7 134 30.5 107 22.7 8,551 33.3 12,137 27.5
2012 2,379 28.4 5,537 19.2 1,894 31.6 275 31.5 111 20.4 10,196 28.1 13,837 26.2
Source: U.S. Census Bureau (2000 Census and ACS 2008-2012 5-Year Estimates)
Source: U.S. Census Bureau (2000 Census and ACS 2008-2012 5-Year Estimates)
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
18
Owner-Occupied versus Rental Units
Many communities attempt to maintain a 3-to-1 ratio of owned to rental units. The urbanized area as a
whole has nearly a 1-to-1 ratio. This is not surprising given the large student population in Iowa City.
From 2000 to 2012, the proportion of owner-occupied properties increased in the urbanized area and
the county. Coralville and Iowa City have higher proportions of rental properties than the other
jurisdictions. Tiffin has expanded its proportion of owner-occupied units, while North Liberty and
University Heights have reduced their proportions of owned units.
Figure 11
3,174
4,466
11,714
13,265
1,595
4,083
295
609
298
313
17,076
22,736
24,967
31,912
831,419
888,331
3,293
3,274
13,488
14,024
664
1,756
145
209
169
204
17,759
19,467
19,113
20,914
317,857
335,178
0%50%100%
2000
2012
2000
2012
2000
2012
2000
2012
2000
2012
2000
2012
2000
2012
2000
2012
CO
R
A
L
V
I
L
L
E
IO
W
A
C
I
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Y
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R
T
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E
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H
N
S
O
N
CO
U
N
T
Y
IO
W
A
OWNER-OCCUPIED AND RENTAL UNITS
Owned units Rental units
Source: U.S. Census Bureau (2000 Census and ACS 2008-2012 5-Year Estimates)
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
19
Housing Stock
Between 2000 and 2012, all jurisdictions added to their housing stock. However, the majority of this
growth has been in single-family housing. The most growth has occurred in North Liberty and Tiffin.
North Liberty nearly doubled its number of single-family housing units and nearly tripled its multifamily
units during this period. Tiffin doubled its supply of single-family and multifamily units. By jurisdiction,
growth in housing stock has generally corresponded with population growth.
Figure 12
Table 10. Regional growth in housing stock, 2000-2012
NUMBER OF SINGLE-
FAMILY UNITS
SINGLE-FAMILY UNITS
ADDED
NUMBER OF
MULTIFAMILY UNITS
MULTIFAMILY UNITS
ADDED
URBANIZED AREA 17,240 6,981 16,836 3,605
JOHNSON COUNTY 25,451 7,951 17,184 2,226
3,085
3,357
12,327 12,518
1,208 693
267 143
353 125
1,739
195
2,635 1,403
2,254 1,831
312 150
41 26
0%
25%
50%
75%
100%
SF MF SF MF SF MF SF MF SF MF
CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS
GROWTH IN SINGLE AND MULTIFAMILY HOUSING UNITS, 2000 -2012
Number SF units, 2000 SF units constructed, 2000-2012
Number MF units, 2000 MF units constructed, 2000-2012
Source: U.S. Census Bureau (2000 Census and ACS 2008-2012 5-Year Estimates)
Source: U.S. Census Bureau (2000 Census and ACS 2008-2012 5-Year Estimates). For the purposes of this section, single family (SF) refers
to both attached and detached single-unit homes. Multifamily (MF) includes all structures with two or more apartments.
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
20
Building Permits
Building permit data show that proportionally more single-family housing permits have been issued than
multifamily permits since 2007. This could indicate that an insufficient amount of land is zoned for
multifamily development in the urbanized area, or that developers have less of a financial incentive to
construct new multifamily dwelling units.
Figure 13
Table 11. Annual breakdown of building permits issued, 2007-2013
433
1220
1299
158
0
690
132
1075
177 124
0
129
0
200
400
600
800
1000
1200
1400
CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY
HEIGHTS
UNINCORPORATED
COUNTY
TOTAL BUILDING PERMITS ISSUED, 2007 -2013
Single-family Multifamily
YEAR CORALVILLE IOWA CITY NORTH
LIBERTY TIFFIN UNIVERSITY
HEIGHTS
UNINC.
COUNTY
SF MF SF MF SF MF SF MF SF MF SF MF
2007 79 0 175 107 254 54 34 0 0 0 79 0
2008 48 0 156 115 290 24 19 16 0 0 88 38
2009 62 0 168 40 255 12 16 20 0 0 98 26
2010 40 0 153 59 136 0 13 16 0 0 82 20
2011 71 122 126 99 157 20 23 54 0 0 54 21
2012 77 10 223 176 136 20 19 18 0 0 101 0
2013 66 0 219 479 71 47 34 0 0 0 107 24
Subtotals 443 132 1220 1075 1299 177 158 124 0 0 609 129
ALL PERMITS 575 2295 1476 282 0 738
Source: State of the Cities Data System, HUD
Source: State of the Cities Data System Building Permits Data Systems, HUD
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
21
Housing Vacancy
Housing vacancy rates are helpful indicators of occupancy turnover and housing mobility. The housing
industry generally regards a 5 percent vacancy rate as optimal. At this rate, there is neither a surplus
nor deficit of available units, which helps regulate housing costs and mitigate cost burden.
Some housing units are considered occupied although the owner does not always live there. In order to
discount these units from the vacancy rate, the following formula is used to compute vacancy rate by
tenure (owner-occupied or renter-occupied):
# vacancies by tenure
(# vacancies by tenure + # occupied units by tenure)
Since 2000, owner vacancy rates have decreased in every jurisdiction except University Heights, while
rental vacancy has increased in every jurisdiction except North Liberty. It is important to note that the
majority of vacancy rates across the urbanized area remain below the industry standard of 5 percent.
Figure 14
2.
3
%
2.
4
%
1.
9
%
2.
6
%
0.
7
%
2.
2
%
0.
9
%
2.
2
%
0.
8
%
0.
0
%
3.
4
%
1.
9
%
2.
8
%
2.
2
%
9.
5
%
4.
6
%
0.
6
%
2.
5
%
4.
4
%
3.
9
%
1.
5
%
7.
6
%
0.
0
%
3.
9
%
0%
2%
4%
6%
8%
10%
CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY
HEIGHTS
JOHNSON COUNTY
VACANCY RATES BY JURISDICTION
2000: Owner vacancy rate 2012: Owner vacancy rate 2000: Rental vacancy rate 2012: Rental vacancy rate
Source: U.S. Census Bureau (2000 Census and ACS 2008-2012 5-Year Estimates)
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
22
Housing Costs and Cost Burden
The Census collects data on housing costs as a proportion of household income. Housing is considered
“affordable” if occupants pay no more than 30 percent of their gross annual income on rent or owner
housing costs. Occupants paying more than 30 percent of gross annual income towards housing are
considered cost-burdened, while those paying more than 50 percent are considered severely cost-
burdened. The U.S. Census Bureau defines gross rent as the combined cost of rent and selected utilities,
while gross homeowner costs refers to mortgage and insurance payments, and selected utilities.
Renters
The 2007 Affordable Housing Market Analysis reported a 4.4 percent increase in rents between 1990
and 2000 in Johnson County, after being adjusted to 2000 dollars. Rents also increased 4.4 percent
between 2000 and 2012 after being adjusted to 2012 dollars.1 The proportion of renters in the
urbanized area who were considered cost-burdened totaled over 55 percent in 2012. Figure 15
illustrates growth in the number of cost-burdened renters, including a rise in those who are severely
cost-burdened. Although the proportion of cost-burdened renters declined in Iowa City, Tiffin, and
University Heights, the proportion of severely cost-burdened renters increased in every jurisdiction.
Figure 15
1 U.S. Census
20
.
1
%
21
.
8
%
17
.
5
%
20
.
6
%
14
.
1
%
21
.
2
%
16
.
0
%
32
.
5
%
11
.
0
%
12
.
3
%
32
.
9
%
28
.
4
%
24
.
8
%
19
.
1
%
17
.
9
%
12
.
9
%
4.
9
%
19
.
7
%
20
.
9
%
42
.
0
%
13
.
1
%
16
.
3
%
42
.
7
%
35
.
6
%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY
HEIGHTS
URBANIZED AREA
PROPORTION OF COST-BURDENED RENTERS BY JURISDICTION
Cost-burdened renters, 2000 Cost-burdened renters, 2012
Severely cost-burdened renters, 2000 Severely cost-burdened renters, 2012
Source: U.S. Census Bureau (2000 Census and ACS 2008-2012 5-Year Estimates)
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
23
A number of cost-burdened renters may be presumed to be student households, but many are not. The
Census does not differentiate age of the 10,761 cost-burdened renters. There are 7,912 households
with a householder under age 25. Discounting this entire age group of householders 2,849 cost-
burdened renters remain, therefore cost burden is not only limited to college-aged persons. Because not
all renters under the age of 25 are students, the actual number of cost-burdened renters who are not
students is higher than this estimate.
Tables 12 and 13 indicate that the proportion of cost-burdened renters is similar to that of the state
while the proportion of severely cost-burdened renters is far higher in the urbanized area than the state
as a whole.
Table 12. Cost-burdened renters by region, county, and state
Table 13. Severely cost-burdened renters by region, county, and state
YEAR
URBANIZED AREA JOHNSON COUNTY IOWA
TOTAL % TOTAL % TOTAL %
2000 5,021 28.3 5,130 27.5 43,292 14.4
2007 N/A 6,616 33.8 65,196 20.3
2012 6,921 35.6 7,057 33.7 71,558 21.4
YEAR
URBANIZED AREA JOHNSON COUNTY IOWA
TOTAL % TOTAL % TOTAL %
2000 3,747 21.1 3,871 20.7 51,524 17.1
2007 N/A 3,958 20.2 61,412 19.1
2012 3,840 19.7 4,129 19.7 67,436 20.1
Source: U.S. Census Bureau (2000 Census, ACS 2005-2007 3-Year, and ACS 2008-2012 5-Year Estimates)
Source: U.S. Census Bureau (2000 Census, ACS 2005-2007 3-Year, and ACS 2008-2012 5-Year Estimates)
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
24
Homeowners
Figure 16 shows the median housing value for owner-occupied units in the urbanized area increased
substantially between 2000 and 2012. In Coralville, the median housing value was $157,100 in 2000,
and by 2012 it had increased to $186,500. The median housing value in Iowa City in 2006 was $161,900
and by 2012 it had increased to $181,000. Median housing values in University Heights increased from
$216,100 in 2000 to $246,800 in 2012. Tiffin’s housing values increased from $132,000 in 2006 to
$146,000 in 2012. On average, median housing values increased 16 percent across the urbanized area
between 2000 and 2012. The greatest increases in housing value in 2012 are found in North Liberty (24
percent) and Coralville (19 percent). The highest median home values were reported in University
Heights at $246,800.
Figure 16
Like renters, homeowners in the urbanized area are increasingly cost-burdened. According to the 2000
Census, 15.6 percent of homeowners were paying more than 30 percent of their income for housing
costs. Of these, 4 percent were severely cost-burdened. Each of these proportions increased by 2012.
From 2000 to 2012, the proportion of homeowner households in the urbanized area who were
considered cost-burdened nearly doubled between 2000 and 2012. Because of population growth, the
actual number of cost-burdened homeowners increased 134 percent over this period, increasing from
2,133 to 4,997.
$157,100 $161,900
$125,600 $132,400
$216,100
$186,500 $181,000
$155,500 $146,000
$246,800
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS
MEDIAN HOUSING VALUE FOR OWNER-OCCUPIED UNITS
2000 2012
Source: U.S. Census Bureau (2000 Census and ACS 2008-2012 5-Year Estimates)
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
25
Figure 17
Table 14. Cost-burdened homeowners by region, county, and state
YEAR
URBANIZED AREA JOHNSON COUNTY IOWA
TOTAL % TOTAL % TOTAL %
2000 2,133 11.6 2,783 15.2 93,730 14.1
2007 N/A 6,962 22.8 178,905 20.2
2012 4,997 22.0 6,489 20.3 169,575 19.1
Table 15. Severely cost-burdened homeowners by region, county, and state
YEAR
URBANIZED AREA JOHNSON COUNTY IOWA
TOTAL % TOTAL % TOTAL %
2000 541 4.0 740 3.9 28,037 4.2
2007 N/A 2,375 7.8 56,972 6.4
2012 1,689 7.4 2,138 6.7 56,941 6.4
11
.
7
%
11
.
7
%
10
.
5
%
16
.
7
%
10
.
6
%
11
.
6
%
13
.
9
%
14
.
4
%
17
.
4
%
9.
0
%
8.
9
%
14
.
5
%
3.
8
%
4.
1
%
1.
7
%
9.
1
%
6.
8
%
4.
0
%
5.
6
%
8.
3
%
6.
7
%
6.
6
%
10
.
5
%
7.
4
%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY
HEIGHTS
URBANIZED AREA
PROPORTION OF COST-BURDENED OWNERS BY JURISDICTION
Cost-burdened owners, 2000 Cost-burdened owners, 2012
Severely cost-burdened owners, 2000 Severely cost-burdened owners, 2012
Source: U.S. Census Bureau (2000 Census, ACS 2005-2007 3-Year, and ACS 2008-2012 5-Year Estimates)
Source: U.S. Census Bureau (2000 Census and ACS 2008-2012 5-Year Estimates)
Source: U.S. Census Bureau (2000 Census, ACS 2005-2007 3-Year, and ACS 2008-2012 5-Year Estimates)
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
26
Income versus Housing Cost
According to Census estimates, housing values in the urbanized area increased by an average of 15.8
percent from 2000 to 2012 after adjusting for inflation. In comparison, real median household income
decreased by nearly 7 percent during the same period. Figure 18 shows median incomes have not kept
pace with rising home values. As the percentage of income spent on housing has increased, so has the
proportion of cost-burdened households (Figure 19).
Figure 18
Figure 19
18.7%
11.8%
23.8%
10.3%
14.2%
7.9%
-12.4%
1.0%
-16.2% -12.5%
-20%
-10%
0%
10%
20%
30%
CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS
PERCENT CHANGE IN MEDIAN HOUSING VALUE
AND MEDIAN HOUSEHOLD INCOME BY JURISDICTION, 2000-2012
Change in median housing value, 2000-2012 Change in median household income 2000, 2012
25
.
4
%
34
.
9
%
22
.
7
%
21
.
6
%
29
.
3
%
29
.
5
%
42
.
9
%
24
.
2
%
22
.
5
%
50
.
0
%
18
.
7
%
17
.
9
%
20
.
8
%
21
.
8
%
16
.
0
%
19
.
8
%
19
.
3
%
22
.
4
%
21
.
1
%
20
.
0
%
0%
10%
20%
30%
40%
50%
60%
CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY HEIGHTS
MEDIAN GROSS HOUSING COSTS AS A PERCENTAGE OF HOUSEHOLD
INCOME
RENT 2000 RENT 2012 OWN 2000 OWN 2012
Source: U.S. Census Bureau (2000 Census, ACS 2008-2012 5-Year Estimates)
Source: U.S. Census Bureau (2000 Census, ACS 2008-2012 5-Year Estimates). North Liberty had zero homeowners paying more than 30
percent household income in 2000.
30 percent
household
income
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
27
The National Low Income Housing Coalition’s (NLIHC) annual publication of Out of Reach provides data
on housing and affordability for metropolitan areas, counties, and states. In 2006, it was reported that
the ‘housing wage’ in Johnson County was $13.62, which is the wage that was necessary in order to
afford the Fair Market Rent (FMR) for a two-bedroom apartment, which was $708 at that time. In 2013,
the FMR had increased to $853, which raised the housing wage necessary to afford rent to $16.40, or an
annual salary of $34,112. As illustrated on page 10, the average salary for six of the 21 employment
sectors in Johnson County are not high enough to afford rent on a two-bedroom unit in the Johnson
County. In total, those six sectors made up over half of the employees in the County, which represented
workers in food preparation and serving, sales, production, personal care, healthcare support, and
farming.
In the 2007 Market Analysis, it was noted that median housing values in Johnson County had increased
30 percent between 1990 and 2000; however, real median income had also increased by nearly 13
percent. In the 2007 analysis, it was estimated that households with income below $50,000
(approximately the low-to-moderate income level) would decrease by 494 in the urbanized area by
2012. According to the Census, there were 21,712 households in the urbanized area with income below
$50,000 in 2012. In an attempt account for the student population, when the households with a
householder under age of 25 are removed, there were still 14,828 households in 2012 with income
below $50,000. Most significant is the number of households with a householder over the age of 25
with household income below $20,000. In 2012, that totaled 5,618 households in the urbanized area.
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
28
Cost Burden Illustrated
To illustrate the magnitude of cost burden in the urbanized area, Figure 20 compares median gross rent
for 2012 versus 30 percent of mean full-time wages for the two industries with the largest workforces.
Combined, the Office and Administrative Support and Food Preparation and Serving industries employ
more than one in four workers. The food services industry has the lowest mean salary for any sector –
$20,043 in 2013. The office and administration industry employs the largest proportion of workers in
the urbanized area, nearly 16 percent, at a mean salary of $35,278. Figure 20 also illustrates that
employees in each industry would have a difficult time finding affordable rental housing in the area.
Figure 20
Table 16. Change in median gross rental cost by jurisdiction, county, and state (adjusted to 2012
dollars)
YEAR CORALVILLE IOWA CITY NORTH
LIBERTY TIFFIN UNIVERSITY
HEIGHTS
URBANIZED
AREA
JOHNSON
COUNTY
2000 $748 $763 $740 $784 $676 $741 $752
2012 $743 $793 $874 $922 $1,191 $793 $789
CHANGE -0.7% 3.9% 18.1% 17.6% 76.2% 7.0% 4.9%
$7
4
3
$7
9
3
$8
7
4
$9
2
2
$1
,
1
9
1
$9
0
5
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
CORALVILLE IOWA CITY NORTH LIBERTY TIFFIN UNIVERSITY
HEIGHTS
URBANIZED AREA
MEDIAN GROSS RENT VS.
30 PERCENT MONTHLY WAGES BY SELECTED INDUSTRIES
2012 Median gross rent, per month
30% full time wages per month, one earner, Office and Admin. Support
30% full time wages per month, one earner, Food Prep. and Serving
Source: U.S. Census Bureau (ACS 2008-2012 5-Year Estimates and Iowa Wage Survey, 2013.)
Source: U.S. Census Bureau (2000 Census, ACS 2005-2007 3-Year, and ACS 2008-2012 5-Year Estimates)
$882
$501
Update to the 2007 Affordable Housing Market Analysis for the Iowa City Metro Area
29
To cover median Iowa City rental costs in 2012, a single-income, full-time employee in food services
making the average salary for that industry would expect to allocate more than half of his or her
earnings towards rent. A typical office worker would expect to allocate slightly less than 30 percent of
his or her income, falling just below the cost-burden threshold. These trends hold throughout the
urbanized area.
Figure 21
Homeownership would also likely be unaffordable for many workers in these sectors, especially when
considering the added costs of property taxes, utilities, and homeowners’ insurance. A single-income
office worker can afford to spend no more than $881 – 30 percent of average monthly wages on home-
ownership. The approximate property tax rate in Iowa City is 2.0 percent.2 On a $100,000 home, that
cost equates to $91 per month. The average cost of utilities is $230, and the average cost of
homeowners’ insurance is $50.3 When these costs are accounted for, only $510 remains for a mortgage
payment, limiting the number of affordable housing options for office workers. Given the same
parameters, a single-income householder in the food services industry would have only $130 to make a
mortgage payment. For a single-income worker in this industry, homeownership is essentially
impossible.
Only 21 homes in the urbanized area sold for $100,000 or less in 2013, according to the Iowa City Area
Association of Realtors. The majority of these were clustered in neighborhoods south of Highway 6 and
east of Gilbert Street in Iowa City, which indicates that homebuyers also face geographical constraints
when searching for affordable housing.
2 Johnson County Assessor
3 American Housing Survey, 2011
44%
34%
32%
29%
27%
77%
60%
57%
51%
48%
0%30%60%90%
UNIVERSITY HEIGHTS
TIFFIN
NORTH LIBERTY
IOWA CITY
CORALVILLE
PERCENT MONTHLY WAGE NEEDED TO PAY MEDIAN RENT FOR
SELECTED INDUSTRIES
Food Services Office and Adminstrative Support
Source: U.S. Census Bureau (ACS 2008-2012 5-Year Estimates) and Iowa Wage Survey, 2013.
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Conclusion
This update to the 2007 Affordable Housing Market Analysis indicates that affordable housing needs are
still unmet and are growing in the urbanized area. Below is a summary of findings:
Real median housing values increased between 2000 and 2012 by an average of 15.6 percent
while real median household income decreased by nearly 7 percent during that same time.
The number and percentage of families in poverty in the urbanized area increased from 1,038
(6.2 percent) in 2000 to 1,684 (8.2 percent) in 2012.
The percentage of participants in the Iowa City Community School District Free and Reduced
lunch program has increased from 22.3 percent of the student population in 2000 to 33.8
percent of the student population in 2013.
In 2006, the hourly wage required to afford a two-bedroom apartment in the urbanized area
was $13.62. As of 2013, the wage required is $16.40.
While the proportion of renters considered to be cost-burdened (paying more than 30% of their
income for housing) decreased slightly (1.4 percent) in the urbanized area between 2000 and
2012 the proportion of severely cost burdened renters (paying more than 50% of their income
on housing) increased by 1,900 households, a 7.3 percent increase.
Nearly one quarter of the homeowner households were cost-burdened in the urbanized area in
2012, in increase of 6 percent from 2000. The number of severely cost-burdened increased by
over 1100 households, or 3.4 percent.
Those working in food preparation/serving jobs and office/administrative support jobs comprise
over 25 percent of the employees in the urbanized area, and the average salary for each is
$20,043 and $35,278 respectively. Workers in these sectors would have difficulty finding
affordable rental housing the urbanized area. Homeownership would be very difficult for
workers in these sectors.
Twenty percent of Johnson County households earned less than $20,000 in 2012, and over half
were households with a householder age 25 and over.
Strategies to Increase Affordable Housing Opportunities
The strategies to address housing needs that were outlined in the 2007 Affordable Housing Market
Analysis are still valid, since the need for more affordable housing is even more evident now than in
2007. The analysis of each strategy was updated to reflect affordable housing conditions today.
While there have been some initiatives undertaken to address the increased need for affordable
housing, updating the 2007 Market Analysis was the first step in a collaborative effort to address
affordable housing regionally. Listed below are the strategies as outlined in the 2007 Affordable
Housing Market Analysis.
1) Change Public Perception
This is the most imperative conclusion from the 2007 market study and the one that must occur before
any real substantive improvement in the provision of affordable housing occurs. Without this initiative,
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public opinion about the definition of affordable housing, what it looks like, the need for it, and who
lives in it will not change. Without a public perception change, it is very difficult for public officials to
initiate public policy, pursue financing options, and work collaboratively toward addressing the need fpr
affordable housing. The change in perception should begin with local government officials. Once local
government officials better understand affordable housing, they can assist with efforts to end the
misconceptions within the community.
A group of interested persons and organizations interested in making Johnson County a more affordable
place to live was formed in late 2013, as the Johnson County Affordable Homes Coalition (JCAHC). One
of the group’s initiatives is to educate the public, which includes city/county staff and elected officials.
The group’s education campaign initiative includes printing posters, flyers, and other information that
provide images of low-to-moderate income persons, including showing them in occupations for which
their pay qualify them as low-to-moderate income. Another goal of the public education campaign is to
provide a consistent definition for affordable housing, what it looks like, and the extent of its need in the
community. An important initiative of the JCAHC is also working with cities to implement policy
changes in order to increase the availability and financial options for development of more affordable
housing.
2) Public Policies
A more detailed explanation of public policy strategies is provided in the 2007 Market Analysis;
however, it is worthy to note that implementation of most of these policies for the benefit of affordable
housing has not occurred since 2007. Some of the policies identified in 2007 include preserving existing
affordable housing units, increasing the amount of land zoned for multi-family housing, and inclusionary
zoning. While there may be a few recommendations that have been implemented by a few
communities, they have not been conducted on a consistent basis or as an urbanized area initiative.
The update to the 2007 Market Analysis was intended to facilitate dialogue on the possible
implementation of public policy changes as a region, or urbanized area. Officials in the area could begin
the dialogue by discussing which of the policies identified in 2007 are feasible, identify those which are
not, and determine other policies that may be more feasible to implement and would increase
affordable housing opportunities in the urbanized area. Without proactive public policy changes, the
market on its own does not create the necessary affordable housing as evidenced by the increased
need.
3) Financing Strategies
The Housing Enterprise Zone designation, offered as a possible funding source in the 2007 Market
Analysis, is no longer available through the Iowa Economic Development Authority; however, the
Workforce Housing Tax Credit program (WHTC) was created to replace it effective July 1, 2014. The
WHTC gives developers tax credits for specific types of housing. In addition, communities are
encouraged to research all state housing programs available through the Iowa Economic Department
Authority and the Iowa Finance Authority. The Housing Trust Fund of Johnson County should also be
contacted in regard to availability of funding and for assistance with identifying other potential funding
sources.
The State Housing Trust Fund program is operated by the Iowa Finance Authority (IFA) and the State
Legislature has appropriated funding for trust funds since 2004. There are currently 27 housing trust
funds across the state, and only one trust fund can be certified to cover a geographic area. Housing
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Trust Fund of Johnson County (HTFJC) is the local housing trust fund that receives state funding and then
through an application process, awards it to developers, organizations, and other entities that propose
projects that will preserve or create affordable housing. Since the creation of HTFJC, it has awarded
over $3 million for projects that have benefited nearly 300 households in Johnson County. The Johnson
County Board of Supervisors and the Cities of Coralville, Iowa City and North Liberty have provided
annual funding to HTFJC, which is combined with the state funding and then awarded through an
application process to affordable housing projects in the county. The 2007 Market Analysis
recommended that a more dedicated stream of revenue be identified to capitalize HTFJC, such as
increasing the recording fee on deeds and mortgages, which would then be used by HTFJC for affordable
housing projects.
4) Create an Environment for Collaboration and Cooperation
A more detailed explanation of the collaboration and cooperation strategies is provided in the 2007
Market Analysis; however, the intent of this initiative was to foster a cooperative environment among
local governments, for-profit and nonprofit builders, and the University of Iowa. With the exception of
the City of Iowa City’s UniverCity program, it is unclear how much of the collaboration and cooperation
that does occur is the result of a community’s initiative. The UniverCity program was initiated by the
City of Iowa City with the intention of stabilizing neighborhoods by creating a healthy balance of rental
properties and owner-occupied properties surrounding downtown and the University campus. It is a
cooperative relationship with the University of Iowa, local lenders, City of Iowa City, Iowa City Housing
Authority, and Friends of Historic Preservation. Between 2011 and 2014, the project has acquired 56
homes, and sold 38 of them. The purchase price of the homes has ranged from $70,855 to $246,558,
with an average sales price of $156,902. While this program has created more homeownership
opportunities in Iowa City, it is evident by the growing need for affordable housing in the urbanized area
that development of other partnerships and a spirit of collaboration and cooperation continue to be
necessary to facilitate affordable housing development.
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Appendix A
This appendix provides information requested by the Urbanized Area Policy Board after the completion
of the Update to the 2007 Affordable Housing Market Analysis for the Iowa City Urbanized Area. Maps
included here show the geographical distribution of cost burden as it relates to the concentration of
students enrolled in the Free and Reduced Lunch (FRL) Program.
Figure A-1 illustrates the FRL rates for the Iowa City Community School District and Clear Creek Amana
School District by elementary school attendance areas for academic year 2012-2013.
Figure A-1
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Figure A-2 shows the proportion of cost-burdened homeowners by Census block group in the Urbanized
Area alongside school FRL rates.
Figure A-2
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Figure A-3 shows the proportion of cost-burdened renters by Census block group in the Urbanized Area
alongside school FRL rates.
Figure A-3